Inventory Of 2010 Clothing Dealers: Trustee, Buyer And Direct Camp

Key word:

The financial crisis has brought the Chinese clothing brand market to the consolidation stage.

Trusteeship has been popular since early twenty-first Century, and has become an important way of garment channel innovation and channel outsourcing.

The so-called trusteeship means that the clothing brand entrusts part of the management power to a specific individual or agency for management, operation, maintenance, upgrading and promotion, thereby promoting the development of the enterprise brand.

Trusteeship institutions must have the advantages of relatively complete personnel, channels, funds and management.

Trusteeship is divided into whole management and sales trusteeship. The whole trusteeship is that the trustee takes over the overall business of the brand and sells trustees as the custodian to manage the sales link only.

In recent years, some brand trusteeship companies have begun to appear in the clothing market, playing a new role between brands and franchisees.

The emergence of brand hosting companies has solved brand investment and sales network channel construction and terminal management. Brand enterprises can focus more on product research and development, product design and product outsourcing.

It can be said that brand trust has launched a new way of clothing industry marketing channel.

At present, most of the brand hosting companies in the domestic market have evolved on the basis of agency.

Unlike the dealer mode, the trustee does not buy goods directly with the brand, nor does it directly enter into a sales contract with the mall, but helps the brand enter the terminal and then sign the sales management contract with the brand in these stores.

Therefore, the revenue from hosting is also different. Dealers sell products from the wholesale price to the terminal when the brand manufacturers sell the goods. The difference between them is their income, while the brand trustee signs the sales performance index in the sales management contract with the brand. After the sales mark is exceeded, the brand trustee can get the rebate of the sales volume.

In the actual operation process, clothing agents and brand hosting are two completely different modes.

Clothing agency is money and goods trading, and pays more attention to the style and quality of products. All business strategies should be consistent with brands.

Brand trust emphasizes more on market development, operation, maintenance and management, and focuses on terminal operation system, product path construction and management.

Whether it is from the brand value or profit acquisition, brand hosting mode has great attraction for agents.

At the same time, relying on Trusteeship institutions to build a market access brand can also get better development.

For trusteeship, while running their own clothing brands, they are constantly looking for brand names that can be managed and integrated into their own resources.

Therefore, in the process of market operation, trusteeship operators not only accumulate a wealth of market resources and experience, but also have their own terminal network.

At present, the three Korean brands responsible for ANSICH, ANDEW and BUCKAROO, which operate in Beijing and Zhejiang, are general manager of Beijing Junsi Zhuo Brand Management Co., Ltd., Huang Zhaohui, who once said in an interview that under the agency mode, because of the need to consider more investment ratio, the business pressure of agents is relatively large, and the space for development is limited by many factors.

If brand trusteeship is implemented, the pressure of trusteeship is relatively small.

Under this mode, the trustee needs to consider the problem from the angle of the overall development of the brand in a certain region, and carry out the comprehensive operation and management of the market and brand, which gives the trustee greater play and greater sense of value.

For brands, the advantage of brand hosting is that they can help brands reduce management costs.

Many domestic small and medium-sized brands or foreign brands find it difficult to find suitable distributors in some big cities and have no ability to establish their own branches in these big cities.

At the same time, they have a strong desire to expand their markets and display their products in big cities, and brand hosting agencies can meet their requirements.

Obviously, brand hosting mode has great appeal to agents both in terms of brand value and profit acquisition.

At the same time, relying on Trusteeship institutions to build a market access brand can also get better development.

Keywords: buyer model

In the face of the brutal "last resort" market rule, how should agents develop themselves? Is it to create a brand by using resources, or to create a competitive advantage through multi brand agents, to reduce risks and increase profits, or to launch their own brand names as channel brands, and to strengthen their own channel advantages and status?

Whether it is an agent or a brand business, in the fierce market competition, it is important to have the ability of brand operation, channel construction and scientific management.

The buyer model provides another possibility for the breakthroughs and development of the agent.

The buyer mode is a buyout operation that is bought by the buyer, and the merchandise is controlled by the seller.

Buyout business takes up a lot of money and has poor flexibility, and businesses are at risk. But at the same time, businesses also have pricing power.

Buyer mode takes on more risks, but also controls more rights, such as strong bargaining power, active procurement rights, larger profit margins and so on. These factors enable retailers to have a more advantageous position in market competition.

Agency mode is a form of business that the agent takes the goods to sell, and the manufacturer controls the initiative of goods.

The agency mode is less occupied by funds and more flexible, and the risk is shared by the manufacturers, but the pricing power is controlled by the manufacturer.

In contrast, agency mode has low risk, flexible capital and changeable inventory.

But when agents pfer risks to suppliers, they lose their initiative.

In the past, China's clothing enterprises focused on production and processing, with low profits and simple management.

With the continuous increase of labor and manufacturing costs, the scale production of low added value and lack of technology has increasingly lost its advantages. China's clothing industry is undergoing a process of pformation from manufacturing to market, that is, from "fixed sales" to "selling products".

In the future, the core of the pformation of China's garment industry is to profit from circulation, and the buyer is to manage the goods from circulation.

In the business mode of supply chain relationship, buyer oriented vertical integration capability will show more and more advantages.

Domestic clothing enterprises have bought the buyer model into the business system, including seven wolves, Bosideng, Metersbonwe and so on.

At the same time, with the entry of ZARA, IT and other international buyer shops and the rise of personalized trend, domestic agents began to contact and understand the "buyer mode".

Although the buyer's mode inevitably faces the localization problem in the actual commercial behavior, its rapid rising speed is enough to show the future of this new force.

Because the buyer is a product guided by the market, the buyer's job will inevitably start from the sales terminal.

Now the agent buyer already has the soil of the buyer. Dealers and agents who control a large number of terminal sales channels will become the practitioners of buying agents. Brand buyers are still in the exploratory stage. Once brand buyers have been widely implemented, they will become the most powerful force in brand development.

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Key words: luxury camp

In 2010, the phenomenon of "discarding" part of agents by international brands has appeared one after another.

In July 26th, HugoBoss, the world's leading luxury brand, was exposed to set up a joint venture in China in the second half of the year.

Before that, a number of big international brands such as Burberry have "dumped" China's agents and reclaimed the agent to do direct battalion.

In fact, as early as the end of 2009, Dickson Poon, a Hongkong tycoon known as "brand name pan", ended 9 years of cooperation with the US clothing brand PoloRalphLauren, and at the same time lost TommyHilfiger's agent in the mainland of China.

The American luxury brand Coach, known for its handbags, has also recovered the Chinese retail business from the agent Junsi group, leaving only 5 retail outlets operated by third party retailers.

At present, 80% of the world's leading luxury brands have entered the Chinese market.

But while these companies are flocking to China, Chinese enterprises are only playing a leading role in risk sharing.

"It is impossible for China's local agents to do the Chinese market forever. Our aim is to capture the market quickly. After 3~5 years, when the market is completely mature, the distributor's right of distribution will be resumed, and then the distributors will be allowed to open up new markets in the two or three tier cities."

Andrea, general manager of the Asia Pacific board of directors of Bella, revealed at the fifth luxury international summit held in Macao recently.

The internationalization of international brands does not mean the end of the mode of agency, and the mature developed markets also have agents.

However, the agents in developed markets are not as functional as the traditional agents in China. Their position is to control the retail channel and integrate the channels into the retail market to "rent" to the brands that they want to enter.

The most successful cases are Japanese businesses, such as Itou Tada and Li Feng Group in Hongkong, China.

These channels have a mature and competitive channel resources in a market. For example, many shops that are not replicable in the prime location are the private property of the channel, or the long-term lease cooperation. These channels also have a perfect logistics and warehousing system. It is very difficult for them to bypass these channels. Otherwise, the brand will need to spend more cost to obtain business resources.

At the same time, these chambers of Commerce set up detailed market development plans for brands, including legal reminders, management output, establishment of salary system in local market, detailed market data and market analysis, communication and access at government policy level, sharing local resources to avoid interference from local protectionism, and helping or leading brands to negotiate price negotiations in local markets.

In this regard, the most typical example is Japan's Itou Tadaryo.

Because it is very difficult to enter the Japanese market from outside, the local consumers are more trustworthy than the "direct trading" with the external brands, such as Itou Tada.

Therefore, under the influence of Itou Tada's strong channel brand influence and the high integration of retail, Itou Tada has nearly 130 European and American fashion brands operating in Japan, ranging from high to low, from luxury to leisure.

Itou Tada has almost become the most important and accessible channel for overseas fashion brands to enter Japan.

Therefore, continuing to deepen and integrate business resources and create channel brand influence is one of the future directions of international brand agents.